With industrial output picking up, the manufacturing sector will be a major contributor to new employment and is likely to generate 27.95 million jobs by 2015, but the share of agriculture is expected to decline, according to a study.
In its study ‘Emerging Future Jobs’, the Associated Chambers of Commerce and Industry of India (Assocham) has projected 87.37 million new jobs by 2015, with 32 percent share held by the manufacturing sector, followed by trade and construction.
And within manufacturing, textiles, food and beverages, transport equipment, metals, leather and machinery are expected to contribute the most to employment generation, it says.
“The next most important source of new employment is expected to be trade with 24.24 million new jobs, followed by construction with a figure of 15.13 million,” the chamber said.
But agriculture, which accounts for a major share in total employment, is now likely to be minor contributor to new employment.
“Manufacturing will have the highest employment potential because after agriculture it accounts for the largest share of jobs at 12.5 percent among different divisions of economic activity. A faster growth of employment in it, therefore, would mean addition of a large number of jobs.”
The chamber said a one percent growth in employment in the manufacturing sector would mean over 6.25 lakh (625,000) new jobs and suggested that if manufacturing was made to grow at 10 percent per annum, its employment potential will grow at over five percent.
“This would mean an addition of over three million new jobs every year.”
The study also projected that though financial services has a small share of 3.4 percent in total employment at present, its contribution will almost double. New jobs will also accrue fast in IT and related sectors, growing to 3.28 million by 2015 from 1.62 million.